Why is Elon Musk talking to Vladimir Putin, and what does it mean for SpaceX?

In a blockbuster story published Friday morning, The Wall Street Journal reports that Elon Musk has been in regular contact with Russian President Vladimir Putin for about two years, with the discussions covering a range of issues from geopolitics to business to personal matters.

There are no on-the-record sources confirming the regular conversations between Musk and Putin, and Musk did not comment to the news organization. A Putin spokesperson said the Russian leader and Musk have had just one telephone call. However, the report is plausibly true, and the Journal cites “several current and former US, European, and Russian officials.” This is also not the first time there have been reports of contact between Musk and Putin.

The new story about Musk’s direct links to an avowed enemy of the United States immediately raised concerns among some prominent US officials who work with the billionaire entrepreneur, including NASA Administrator Bill Nelson.

“I don’t know if that story is true,” Nelson said in a conversation with Semafor on Friday morning. “If it’s true there have been multiple conversations with Elon Musk and the president of Russia, then that would be concerning, particularly for NASA and the Department of Defense.” Nelson added that the report should be investigated.

NASA Space Technology To Russia, with love

Musk’s motivations for speaking directly with Putin are not immediately clear. His largest companies, SpaceX and Tesla, do not do business directly with the Russian government. In fact, the rise of SpaceX as a dominant player has substantially harmed Russia’s space business in multiple ways: it helped force US rival United Launch Alliance to stop buying Russian rocket engines, it reduced demand for Russian commercial launch services, and SpaceX’s Crew Dragon vehicle allowed NASA to stop spending hundreds of millions of dollars a year for Russian transportation to the International Space Station.

Unlike Tesla’s complicated interactions with China, which give that country some leverage over Musk’s finances, Russia has no such levers. The most plausible answer for why Musk is conversing with Putin is that he sees himself as a global power broker and wants to do bold things like solve the Ukraine crisis. Musk has ideas and views for how the world should be, and developing relationships with world leaders will help advance those ideas. Musk is also opportunistic and must believe that he can manage Putin in a way that is advantageous to his personal and business aims.

One concern for US policymakers is that this could represent a break in a long-running symbiotic relationship between Musk and America. For a couple of decades the United States’ and Musk’s ambitions—to build electric cars, reusable rockets, and solve the world’s big problems with technology—have moved forward more or less harmoniously. Musk thrived amid America’s ethos of freedom and capitalism. The nation benefited from world-leading technology and economic development.

Nowhere has this relationship borne more fruit than at SpaceX, which has almost singlehandedly assured US preeminence in space for at least the next decade and probably beyond. Musk builds the best rockets, operates the only proven US human spacecraft, and flies more than half of the active satellites in Earth orbit. In the wake of Russia’s invasion of Ukraine, Europe turned to SpaceX to get its most valuable satellites into space, and Starlink provided essential communications in Ukraine. NASA’s lunar program only succeeds if SpaceX’s Starship vehicle succeeds.

But in the last two years, the same time frame in which Musk has reportedly been in contact with Putin, the once symbiotic relationship between Musk and the United States has begun to fray. This has also coincided with Musk’s purchase of Twitter and increasing alignment with conservative politics.

NASA Space Technology Musk goes MAGA

Many Americans are celebrating Musk’s bromance with Republican presidential nominee former President Donald Trump. They appreciate his embrace of Republican politics and the more than $100 million he has invested in Trump winning the presidency. In characteristic Musk fashion, he has gone all-in on a cause he deems essential to the future of his interests and those of humanity, even temporarily living in Pennsylvania.

But for many other Americans, the response to Musk’s activities has been revulsion. He has used social network X (formerly Twitter) to push an increasingly partisan viewpoint and peddled a stream of ideas and theories that can accurately be described as misinformation. These people are increasingly uncomfortable with Musk’s power over the US space program and the country’s electric vehicle industry, and ability to influence geopolitical affairs through the Starlink constellation for which there is no viable competitor at present. The idea that Musk is regularly conversing with Putin, an avowed foe of the United States and Western democracies, is deeply uncomfortable.

After nursing a libertarian streak for decades, Musk has become ultra-political. He is loved. He is hated. Because he is so personally embodied by the brands of his biggest companies—much of Tesla’s stock value is predicated on Musk’s perceived ability to steer into the future, and for all intents and purposes, Musk is SpaceX—there are bound to be consequences not just for the man, but for his brands.

Musk’s increasingly partisan positions have already affected Tesla, potentially reducing sales to Democratic-leaning voters. But until recently, SpaceX has largely flown above the fray. However, that could change. During Musk’s recent showdown with Brazil, for example, the Starlink Internet service was caught in the crosshairs.

NASA Space Technology Implications for SpaceX

At a minimum, in the wake of Friday’s report, Musk will likely face increased calls for the revocation of his national security clearance. As the launch provider for sensitive Department of Defense missions, Musk has access to privileged information about the capabilities of spy satellites and other national security assets. He also has critical contracts with the US military for Starlink communication services under the Starshield business unit.